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SCM:CST: Work Order Completion Transaction Not Including Cost For Scrapped Units (Doc ID 2806734.1)

Last updated on SEPTEMBER 26, 2021

Applies to:

Oracle Fusion Manufacturing Cloud Service - Version and later
Information in this document applies to any platform.


Expectation that WIP Balance will be included in cost, per the set up chosen for scrap to be included in inventory.

The following setup exists:

  1. Manage Cost Profile > Actual Cost > Cost Profile Org / Lot / Asset / Actual
  2. Manage Valuation Structures > Cost Org / Inventory Org / Lot
  3. Manage Item Cost Profiles > Item number 1234 > Org / Lot / Asset / Actual
  4. Scrap valuation has been set to Inventory for actual costing in the UI:
    Cost Profile for Org-Lot_Asset-Actual: Work Order Valuation Rules > Operation Scrap Accounting = 'Include in Inventory'

Want the scrap cost included in good units coming from batch, but the UI screens show an unexpected unit cost as $49.98  ie: (total input cost/total complete qty) - (remaining scrap cost - total completed qty):
   (1) Review Work Order Costs > Output Cost Per Unit
   (2) Review Inventory Valuation > Review Transaction Costs > Transaction Cost

The mapping set entries were generated: WIP PRODUCT COST WRITEOFF / INVENTORY WRITEOFF  which alerted user that the unit cost was different then expected.

Expect Unit Cost to be $53.02 (total input cost/total complete qty) upon Work Order completion.    Calculated as: total input cost Incurred / total completed quantity (82189.27 / 1,550 = $53.02).

Yes, it's being calculated to exclude WIP Balance (scrap cost) and is showing in UI as $49.98   ($53.02 - $3.03 = $49.98  IE: Remaining scrap cost left on WO $4711.17 / completed qty 1550 = $3.03).  

Why does Unit Cost show as $49.98 (not $53.02 as user expected)?






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